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Jonathan Wauton From Precy Dumlao, Opalesque Asia:
One of Europe’s pioneer hedge funds, London-based Ermitage Group ended December on mixed returns but closed 2010 on a good note with commodities, most equities, credit and most emerging markets (EM) assets performing well, whilst peripheral European equities & bonds and Chinese equities were the biggest net losers.
In his market commentary, Ermitage CIO Jonathan Wauton said that markets continued through most of 2010 to large swings in sentiment as the risk-on / risk-off trading mentality dominated market activity. For 2010, Wauton expects most equity markets to have reasonable returns this year.
“Unlike previous recovery cycles, most corporates are in good shape, not least because of super low interest rates, and valuations are supportive. The same can probably be said for emerging markets and commodities. On the other hand, the big problem for investors continues to remain largely at the sovereign level, both in the Eurozone and in the USA (albeit for clearly different reasons). The ultimate outcome of the Eurozone’s debt problem remains hugely uncertain at this time, but market activity over the last few weeks and months of 2010 indicates that investors believe that the problem is wholly unresolved, and if anything, getting worse by the day.”
“2011 therefore looks like another year where market sentiment could swing back and forth on the ba...................... To view our full article Click here
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